Hotel Chocolat behavioural segmentation campaign Case Study from RedEye

Case Study: Hotel Chocolat behavioural segmentation campaign

Hotel Chocolat behavioural segmentation campaign
Hotel Chocolat behavioural segmentation campaign

“Over four years ago RedEye helped us achieve whitelist status. Since then, when devising email strategies, we know the team at RedEye always has our best interests as an email sender in mind. While helping us rapidly grow our active email database, RedEye’s behavioural segmentation strategy has enabled us to send highly targeted information to every subscriber. The first piece of communication a user receives is often the most important. If users think it’s irrelevant or futile it’s likely they will unsubscribe, or worse just ignore future communications. RedEye’s highly targeted strategy and impressive database management ensures we can correctly target users with email communications.”

Matthew Keys, Digital Marketing Manager at Hotel Chocolat

The Challenge

Previously RedEye helped Hotel Chocolat set up a unique in-store email sign-up microsite. The process is helping Hotel Chocolat significantly increase the volume of its email database with valuable customer data. However, Hotel Chocolat was more than aware, often when email volumes increase, open rates and click rates decrease and unsubscribe rate rise, causing a negative impact on sender reputation. To reduce this risk and maximise the revenue potential from each email address collected, Hotel Chocolat knew it had to send quality email communications. The challenge therefore was to find a way to effectively manage all the new data being received in order to efficiently send quality communication to each new subscriber. Doing this would keep new and existing subscribers highly engaged and ultimately help increase online and wider multi-channel sales.

The Solution

In order to limit the volume of emails sent (so not to appear like a bulk sender and increase the quality of targeting) RedEye helped Hotel Chocolat implement a process of behavioural segmentation.

Utilising RedEye’s single integrated database Hotel Chocolat was able to efficiently segment subscribers based on how they signed-up (microsite or online). A targeted welcome programme consisting of four welcome emails over 45 days was developed for each segment, meaning the first email a subscriber received was relevant to their past experience with the company. This would engage all users from the inception of email communication.

Further to this, subscribers were automatically segmented based on additional activity or further engagement with the brand (such as email behaviour, website behaviour or transaction history). With all activity effectively held in one place, all new subscribers were quickly passed into correct engagement segments, ready to be targeted with appropriate email communication.

Segments are continually built upon to identify members by recency and frequency of email opens, frequency of website visits and website purchase activity. This enables Hotel Chocolat to target members at exactly the right time in the customer lifecycle, and avoids sending emails to those showing signs of disengagement.

The Results

While increasing Hotel Chocolat’s send volume by 44% year-on-year, utilising behavioural segmentation has helped retain Hotel Chocolat’s sender reputation (with whitelist status) and successfully achieved the ultimate aim, improving online sales.

  • Revenue direct from email has increased by 20% helping improve total website revenue by 12%
  • Average order value has increased by 22%
  • Deliverability has improved
  • Both open rates and click rates have increased
  • There was no negative impact on unsubscribe rates